NFIB State Director Lays Out What’s Left to Accomplish in Small Business Recovery Plan
NFIB, or the National Federation of Independent Business here in Virginia, is urging legislators to get back to the table and finish what they started this legislative session: making sure that Virginia small business owners have the resources they need to move forward during the recovery.
At the beginning of the legislative session, NFIB launched a statewide campaign that highlights the challenges facing Virginia small businesses, and there is more work to be done.
Here is a list of priorities still left on the table that small business owners across Virginia are urging lawmakers to take action on:
Tax relief for small businesses so they can recover faster, keep and hire employees, and bolster their communities.
- Increasing Virginia’s Standard Deduction to Federal Standard Deduction: Currently, Virginia small businesses, the majority of whom file individually, are leaving money on the table when they claim the generous Federal Standard Deduction of $12,500 for an individual or $25,000 for a couple. Virginia’s standard deduction is $4,500 for an individual or $9,000 for a couple.
- Suspending Virginia’s Increased Fuel Tax: Earlier this session, Gov. Glenn Youngkin pledged to push to suspend Virginia’s fuel tax for one year. According to the latest NFIB Small Business Optimism Index, 26 percent of small business owners nationwide said inflation is the single most important problem in operating their business, the highest reading since the third quarter of 1981. “Most of our small business owners need to buy gas on a daily basis to run their business. When fuel prices go up, their costs go up and ultimately the Virginia consumer will have to pay more for products and services. Reducing the cost of gas would ease the burden the load on every single Virginian,” said Julia Hammond, NFIB State Director in Virginia. NFIB is now calling on the legislature to follow the governor’s lead and pass sensible legislation to help small businesses recover during this critical time.
Unemployment Insurance Reform so that small businesses are not faced with higher payroll taxes and can quickly fill open positions and get the economy growing again.
- Replenishing the unemployment trust fund with unused Federal relief money to shield small businesses from significant payroll tax increases.
- Ensuring small businesses are not held liable for fraudulent payments or overpayments in benefits made by the Virginia Employment Commission which would increase the taxes small businesses pay.
As the most recent NFIB data shows, small businesses are still trying to get back on their feet after the COVID-19 pandemic.
According to NFIB’s 21st Small Business Covid-19 Survey:
- Most small business owners reported that their local economy remains below pre-crisis levels of economic activity.
- 27% believe it will be the second half of 2022 before economic conditions return to pre-crisis levels.
- 39% of small business owners are less optimistic and expect conditions not to fully improve until 2023 or later.
- When asked if supply chain disruptions are impacting their business, about half (47%) of small business owners reported a significant impact, basically unchanged from early September.
- The labor shortage is the other significant challenge facing many small employers. 23% of small employers are currently experiencing a significant staffing shortage and another 20% are currently experiencing a moderate staffing shortage.